Q1 2024 Intuitive Machines Inc Earnings Call
Operator: Welcome to the Intuitive Machines first quarter 2024 conference call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question and answer session. If you would like to ask a question, please press star and then 1 on your telephone keypad. A confirmation tone will indicate your line is in the Question Queue.
Welcome to the intuitive machines first quarter 'twenty 'twenty four conference call. At this time all participants are in a listen only mode. After the speaker's presentation. There will be a question and answer session. If you would like to ask a question. Please press star and then one on your 10.
Phone keypad.
Speaker Change: And formation tone will indicate your line is into cartridges in Q U S Star and then two if you would like to move your questions from the queue.
Speaker Change: If anyone should be quiet operator assistance during the conference. Please press Star then Seattle to stigma and a pre though as a reminder, this conference is being a bit cautious now I would like to hand, the conference over to your host Steven Chang head of Investor Relations. Please go ahead Sean.
Stephen Zhang: You may press star and then 2 if you would like to remove your questions from the list. If anyone should require operator assistance during the conference, please press star then zero to signal an operator. As a reminder, this conference is being recorded. Now, I would like to hand the conference over to your host, Stephen Zhang, Head of Investor Relations. Please go ahead, Stephen.
Stephen Zhang: Good morning, welcome to the intuitive machines first quarter 'twenty 'twenty four earnings call.
Stephen Zhang: Good morning. Welcome to the Intuitive Machines first quarter 2024 earnings call. Chief Executive Officer Steve Altemus and Interim Chief Financial Officer and Controller Steve Vontur are leading the call today. Before we begin, please note that some of the information discussed during today's call will consist of forward-looking statements setting forth our current expectations with respect to the future of our business, the economy, and other events. The company's actual results could differ materially from those indicated in any forward-looking statements due to many factors. These factors are described in the forward-looking statements section of the company's earnings release and the company's most recent 10-K and 10-Q filed with the SEC. We do not undertake any obligation to update forward-looking statements.
Speaker Change: He's executive officer, Steve Ultimate and interim Chief Financial Officer, and controller, Steve bonds for our leading the call today.
Stephen Zhang: Before we begin please note that some of the information discussed during today's call will consist of forward looking statements setting forth our current expectations with respect to the future of our business the economy and other events.
Stephen Zhang: The company's actual results could differ materially from those indicated in any forward looking statements due to many factors.
Stephen Zhang: These factors are described under forward looking statements in the company's earnings release and the company's most recent 10-K and 10-Q filed with the D C.
Stephen Zhang: We do not undertake any obligation to update forward looking statements.
Stephen Zhang: We also expect to discuss certain financial measures and information that are non-GAAP measures as defined in the applicable SEC rules and regulations.
Stephen Zhang: Reconciliations to the company's GAAP measures are included in the earnings release filed on form 8-K.
Stephen Zhang: Finally, we posted an earnings call presentation on our website, which provides additional context on our operational and financial performance.
Intuitive Machine: You can find this presentation on our Investor Relations page at Www Dot intuitive machine dotcom black investors.
Stephen Zhang: We also expect to discuss certain financial measures and information that are non-capital measures as defined in the applicable SEC rules and regulations. Reconciliation of the company's gap measures is included in the earnings release filed on Form 8K. Finally, we posted an earnings call presentation on our website, which provides additional context on our operational and financial performance. You can find this presentation on our Investor Relations page at www.intuitivemachines.com slash investors. Now, I'll turn the call over to Steve Altemus.
Stephen Zhang: Now I'll turn the call over to Steve Baltics.
Steve Baltics: Thanks Steven.
Stephen Altemus: We had an excellent start to the year, anchored by our successful IM-1 mission and a full quarter of OMS-III operations. Revenue was $73.1 million in the quarter, an increase of over 300% versus the same quarter last year.
Steve Baltics: We had an excellent start to the year anchored by our successful I am one mission and a full quarter of almost three operations.
Steven Vontur: Revenue was $73 1 billion in the quarter, an increase of over 300% versus quarter one of last year.
Stephen Altemus: This was yet another historic feat for the company and showcased our continued growth trajectory. The standout accomplishment in the first quarter was Intuitive Machines' first successful lunar mission, which fundamentally disrupted the economics of landing on the moon and broke economic and technological barriers to enable this new burgeoning lunar economy. Thank you to the Intuitive Machines team for their execution during this quarter and willingness to challenge traditional paradigms of exploration. Their efforts and successes do not stand alone.
Steven Vontur: This was yet another historic feat for the company and showcased our continued growth trajectory.
Intuitive Machines: The standout accomplishment in the first quarter was intuitive machines first successful lunar mission, which fundamentally disrupted the economics of landing on the Moon and broke economic and technological barriers to enable this new burgeoning lunar economy.
Speaker Change: Thank you to the intuitive machines team for their execution during this quarter and willingness to challenge traditional paradigms of exploration.
Speaker Change: And two of the machines efforts and successes did not stand alone on.
Stephen Altemus: On May 3rd, China launched Chang'e 6 to the far side of the moon on their way to potentially being the first nation to return samples from the far side. The steady drumbeat of China's success demonstrates the strategic importance of the moon and, we hope, is a call to action for the U.S. government and the public about what Intuitive Machines is building and the importance of stable funding and commercial utilization. We are at the forefront of this new space race and committed to our position as a national asset supporting global endeavors in space. In this rapidly evolving landscape, technological advancement is paramount. We believe Intuitive Machines is standing at the forefront of this imperative.
China: On May 3rd China launch Changi six to the far side of the moon on their way to potentially being the first nation to return samples from the far side.
Intuitive Machines: The steady drumbeat of China's success demonstrates the strategic importance of the Moon and we hope as a call to action for the U S government and the public of what intuitive machines is building and the importance of stable funding and commercial utilization.
Intuitive Machines: We are at the forefront of this new space race and committed to our position as a national asset supporting the global endeavors in space.
Intuitive Machines: In this rapidly evolving landscape.
Intuitive Machines: Logical advancement is Paramount, we believe intuitive machines is standing at the forefront of this imperative.
Intuitive Machines: The success of our complete lunar program in the first quarter showcase the commercial viability and agility required to put.
Stephen Altemus: The success of our complete Lunar Program in the first quarter showcased the commercial viability and agility required to put the industry firmly in the space race, with the company standing as a first mover in this effort. In the weeks following our lunar landing, we assessed how our four-year investment in technology development performed. Our team at Intuitive Machines completed a comprehensive review of vehicle and mission operations and systems performance. While successful in our first landing and customer data delivery, we continue to strive for perfection in navigating to pinpoint landing accuracy on the surface with our autonomous precision landing and hazard avoidance technology.
Intuitive Machines: The industry firmly in the space race with the company standing as a first mover in this effort.
Stephen Altemus: Each mission exercises and refines a complex set of algorithms that make such autonomy possible in the harshest environments of the moon, namely the South Pole. The review resulted in software and hardware advancements that we believe expand our technical capability to track our vehicle accurately in space and land with 20 times better precision on our next mission. In addition, we reviewed our lunar distance RF communications and orbit determination capabilities and found several technical adjustments we expect will improve mission performance and best position the company to provide lunar communication services in support of future human missions.
Intuitive Machines: In the weeks following our lunar landing, we assessed how our four year investment in technology development performed.
Speaker Change: Our team attitude of machines completed a comprehensive review of vehicle and mission operations and systems performance.
Speaker Change: While successful in our first landing and customer data delivery.
The company: We continue to strive for perfection and navigating to pinpoint landing accuracy on the surface with our autonomous precision landing and hazard avoidance technology.
Speaker Change: Each mission exercises and refined a complex set of algorithms that makes such autonomy possible in the harshest environments of the moon, namely the South pole.
Speaker Change: The review resulted in software and hardware advancements that we believe expand our technical capability to track our vehicle accurately and space and land with 20 times better precision on our next mission.
Speaker Change: In addition, we reviewed our lunar distance RF communications in orbit determination capabilities and found several technical adjustments, we expect will improve mission performance and best position the company to provide lunar communication services in support of future human missions.
Stephen Altemus: The technical improvements for IM-2 are vertically integrated capabilities within the company that we can perform with little to no impact on our intended Q4 2024 launch date or require any additional capital investment while we continue assembly of the flight vehicle.
The company: The technical improvements for I am to our vertically integrated capabilities within the company that we can perform with little to no impact on our intended quarter for 'twenty 'twenty four launch date for it.
Speaker Change: Or require any additional capital investment, while we continue assembly of the flight vehicle.
Stephen Altemus: At its core, this comprehensive review confirmed that the technology we developed to provide lunar access and lunar data services is robust, and we are capable of making agile adjustments that improve our customer experience on the lunar surface. This tech capability expansion in autonomous vehicle operations, precision landing, and navigation is focused on the goal of adding command and control communications and surface operations to our current lunar access services in a sustainable way. Beyond our first of three planned lunar missions, the April 3rd announcement of Intuitive Machines' Lunar Terrain Vehicle Services Award moves us beyond the delivery of science and discovery payloads and on to heavier cargo delivery and surface systems development and operations.
Speaker Change: At its core this comprehensive review confirmed that the technology, we developed to provide lunar access and lunar data services is robust and we are capable of making agile adjustments that improve our customer experience on the lunar surface.
Speaker Change: This tech capability expansion in autonomous vehicle operations precision landing and navigation is focused on the goal of adding command control communications and surface operations to our current lunar access services in a sustainable way.
Speaker Change: Beyond our first of three planned lunar missions B E.
Intuitive Machines: Third announcement of intuitive machines lunar terrain vehicle services award moves us beyond the delivery of science and discovery payloads and on to heavier cargo delivery and surface systems development and operations.
Stephen Altemus: The LTV delivery system, the rover design itself, and both the autonomous and crewed operations represent the first critical piece of infrastructure for the Artemis campaign. The Lunar Terrain Vehicle Contract has a total program value of over $4.6 billion and is structured across multiple phased awards. In the first phase, starting in the days following Q1, the Intuitive Machines-led Moon Racer team will take the next year to create a preliminary design for delivery, deployment, and autonomous operations of the LTV. The second phase, which we expect to be awarded in mid-2025, calls for the vehicle's delivery and deployment demonstration.
Intuitive Machines: The L. T V delivery system. The Rover design itself in both the autonomous and crude operations represent the first critical piece of infrastructure for the Artemis campaign.
Intuitive Machines: Ah lunar terrain vehicle contract has a total program value of over $4 $6 billion and is structured across multiple phase the wards.
Intuitive Machines: In the first phase starting in the days following Q1 intuitive machines led Moon racer team, we'll take the next year to create a preliminary design for delivery.
Floyd: Floyd and autonomous operations of the L. T D.
Intuitive Machines: The second phase, which we expect to be awarded in mid 2025 calls for the vehicles delivery and deployment demonstration.
Stephen Altemus: If awarded, the second phase, Intuitive Machines' current Lunar Production and Operations Center in Houston will be the epicenter for the design, development, manufacturing, assembly, and test of the larger cargo lander and the LTV surface vehicle itself as the program matures. It's important to note that the company's cargo class lander uses the same core technologies as our smaller Nova-C lander, and the LTV services project allows for NASA and commercial service operations led by Intuitive Machines.
Intuitive Machines: If awarded the second phase intuitive machines currently in production and Operation Center in Houston will be the epicenter.
Floyd L.: The design development manufacturing Assembly and test of the larger cargo lander and.
Intuitive Machines: In the L. T V surface vehicle itself as the program matures.
Intuitive Machines: It's important to note the company's cargo class lender uses the same core technologies as our smaller Nova C. Landor and he L. T V services project allows for NASA and commercial surface operations led by intuitive machines.
Intuitive Machines: Beyond the initial demonstration another phase of the contract will move into continuous operations on the lunar surface over a multi year performance period.
Stephen Altemus: Beyond the initial demonstration, another phase of the contract will move into continuous operations on the lunar surface over a multi-year performance period. For Intuitive Machines, the next critical chess piece in laying the foundation for a cislunar economy is the command and control and communications infrastructure in and around the moon. Every commercial, government, or international mission to the moon requires a very high degree of autonomy.
Intuitive Machine: For intuitive machine the next critical chess piece and laying the foundation for assist lunar economy.
Intuitive Machine: It's in the command and control and communications infrastructure in and around the Moon.
Intuitive Machine: Every commercial government or international mission to the Moon requires a very high degree of autonomy.
Stephen Altemus: Autonomous operations with reliable command and control communications are essential for the expansion of this lunar economy. Intuitive Machines' Technological Advancements in Autonomous Vehicle Operations and Precision Navigation will be the backbone of its command and control system. These core technologies are applied to our lunar communication satellites currently in production, and Intuitive Machines is eagerly anticipating the announcement of a significant NASA award for Communications Data Relay Services and Position, Navigation, and Timing Services. We are expecting this contract award announcement in the second quarter.
Economists: Economists operations with reliable command and control communications are essential for the expansion of this lunar economy.
Intuitive Machines: Intuitive machines technological advancements in autonomous vehicle operations and precision navigation will be the backbone of its command and control system.
Intuitive Machines: These core technologies are applied to our lunar communication satellites currently in production.
Intuitive Machines: And then two of the machines is eagerly anticipating announcement of a significant NASA Award for communications data released it services and position navigation and timing services.
Intuitive Machines: We are expecting this contract award announcement.
Intuitive Machines: In the second quarter.
Speaker Change: Earlier, I mentioned that we broke economic and technical barriers that enable cislunar expansion.
Stephen Altemus: Earlier, I mentioned that we broke economic and technical barriers that enable cislunar expansion. I believe we are progressing with the necessary investments in technologies to demonstrate the same unprecedented economics deeper into the solar system. Already, we are seeing the United States government and NASA increase their reliance on procuring commercially provided systems and services. The ability of the U.S. to leverage the ingenuity and innovation of its economic and technical industrial base to break the price barriers of traditional aerospace systems speaks to the difference in the overall US strategy for cislunar expansion and possibly the most powerful competitive advantage for the U.S. in this global space race.
NASA Award: I believe we are progressing with the necessary investments in technologies to demonstrate the same unprecedented economics deeper into the solar system.
Speaker Change: Already we are seeing in the United States government and NASA increase their reliance on procuring commercially provided systems and services.
Speaker Change: The ability of the U S to leverage the ingenuity and innovation of its economic and technical industrial base to break the price Bury yourself traditional aerospace systems speaks to the difference in the overall U S strategy for cisplatin or expansion and possibly the most powerful competitive advantage for the U S and the global space race.
Stephen Altemus: During our last call, we mentioned NASA's 2024 budget reduction, noting that much of the $2 billion shortfall came from the Mars Sample Return Program. Since that update, the agency has sought innovative commercial designs to disrupt the cost of delivering Mars samples back to Earth. Intuitive Machines has engaged the agency and intends to provide a solution set based on the technology architecture we have been developing for lunar material return. Finally, we continue to make progress towards our IM-2 mission that we expect to launch later this year to our South Pole landing site, potentially becoming the first company to land on the moon twice in one year.
Speaker Change: During our last call, we mentioned that the 'twenty 'twenty four budget reduction, noting that much of the $2 billion shortfall came from the Mars sample return program.
Agency: Since that update the agency has sought innovative commercial designed to disrupt the cost of delivering more samples back to earth.
Agency: Two of the machines has engage the agency and intends to provide a solution set based on technology architecture, we have been developing for lunar material return.
Agency: Finally, we continue to make progress towards our I M. Two mission that we expect to launch later this year to our south pole landing site potentially becoming the first company to land on the Moon twice in one year.
Stephen Altemus: We anticipate our third mission in 2025, with the final landing date still in discussions with NASA. We now have more certainty about NASA's second quarter 2024 award of the next CLPS mission, CP22, that calls for launch in the 2027 time frame. This shift in mission timing creates an opportunity for Intuitive Machines to insert its first fully commercial mission after IM3 as its fourth mission to the moon. With the success of Q1 in the execution of its business plan, and now the stability recognized through our pending proposal awards, Intuitive Machines is prepared to issue full-year revenue guidance for 2024.
Speaker Change: We anticipate our third Michigan in 2025 with the final landing dates still in discussions with NASA.
NASA: We now have more certainty about Nasa's circuit.
Nasa Circuit: Quarter 'twenty 'twenty four award of the next clips mission C. P 22 that called for a launch in the 2027 timeframe.
Nasa Circuit: This shift in mission timing creates an opportunity for intuitive machines to insert its first fully commercial mission. After I am three as its fourth mission to the Moon.
Intuitive Machines: With the success of Q1, and the execution of our business plan and now the stability recognized through our pending proposal awards.
Intuitive Machines: Two of the machines is prepared to issue full year revenue guidance for 'twenty 'twenty four.
Stephen Altemus: Steve Vontur will go through the details of the guidance. I am pleased to report on the tremendous growth and maturity we have seen this quarter, and I'm excited about what the balance of this year holds for Intuitive Machines. With that, I'll turn the call over to Intuitive Machines Interim Chief Financial Officer, Steve Vontur.
On tour: On tour will go through the details of the guidance.
On tour: I am pleased to report on the tremendous growth and maturity we have seen over this quarter.
On tour: Excited about what the balance of this year holds for intuitive machines.
Speaker Change: With that I'll turn the call over to an intuitive machines interim Chief Financial Officer, Steve on tour.
Steve: Thank you, Steve and thanks to everyone joining us today.
Steven Vontur: Thank you, Steve, and thanks to everyone joining us today. I'll begin by going through our first quarter 2024 results, followed by a few comments on our liquidity backlog and 2024 revenue guidance. Revenue accelerated in the quarter and was $73.1 million compared to $18.2 million in the first quarter of 2023, driven primarily by our first full quarter of OMS-3 revenues of just over $40 million, and rounded out with revenue from our three NASA Eclipse and related mission payloads. We had a couple of one-time revenue impacts in the quarter.
Steven Vontur: First, we had about $12 million related to the IM-1 mission success milestones. We also recorded an additional $5.6 million of revenue combined on the IM-2 and IM-3 CLPS task orders relating to contract modifications as we work with NASA to finalize updates to mission timing, payloads, and landing sites for the remaining two missions. As mentioned earlier by Steve, we expect the IM-2 mission to launch in late 2024 and IM-3 sometime in 2025
Steve: I'll begin by going through our first quarter 2024 results followed by a few comments on our liquidity backlog in 2020 for revenue guidance.
Steven Vontur: Gross margin continued to improve versus prior quarters and was a positive $12.2 million this quarter, driven primarily by the IM-1 mission success milestones and modifications on the other two missions, as well as the OMS-3 activity. Operating loss for this quarter was $5.4 million versus $14 million in the first quarter of 2023. The lower operating loss in the quarter was again driven primarily by the items noted above and was partially offset by higher J&A.
Steve: Revenue accelerated in the quarter and was $73 1 million compared to $18 2 million in the first quarter of 2023.
Speaker Change: Driven primarily by our first full quarter of <unk> owns three revenues of just over $40 million and rounded out with revenue from our three NASA clips and related mission payloads.
Speaker Change: We had a couple of one time revenue impacts in the quarter.
NASA: First we had about $12 million related to the I am on mission success milestones.
NASA: We also recorded an additional $5 6 million of revenue combined on the IL, two and I am three cliffs task quarters relating to a contract modification that we work with NASA to finalize updates submission timing payloads and landing sites, but the remaining two missions.
Steve: As mentioned earlier by Steve We expect the IMT mission to launch in late 2024, and I am three sometimes in 2025.
Steve: Gross margin continued to improve versus prior quarters and was a positive $12 $2 million this quarter driven primarily by the am one mission success milestones.
Steve: Modifications on the other conditions as well as the arms three activity.
Steve: Operating loss for this quarter was $5 $4 million versus $14 million in the first quarter of 2023.
Speaker Change: Our operating loss in the quarter was again driven by primarily by the items noted above and were partially offset by higher G&A.
Steven Vontur: SG&A ran higher in Q1 2024 and was primarily driven by incentive comp and overall headcount increases, including higher non-cash equity awards that did not exist in the first quarter of the previous year. In addition, we saw increases in other expenses, such as accounting and legal professional fees, bids and proposal expenses, and rent on the new corporate headquarters as we continue to support the company's rapid growth. Also included in the quarter were one-time charges totaling approximately $5.7 million.
Speaker Change: SG&A ran higher in Q1, 'twenty 'twenty, four and was primarily driven by incentive comp and overall head count increases, including higher noncash equity warrants that did not exist in the first quarter in the last year.
Speaker Change: In addition, we saw increases in other expenses, such as accounting and legal professional fees.
Speaker Change: The proposal expenses and rent on the new corporate headquarters as we continue to support the Companys rapid growth.
Speaker Change: Included in the quarter were one time charges totaling totaling approximately $5 7 million.
Steven Vontur: On the cash side, we ended Q1 with a balance of $55.2 million, driven primarily by $50.6 million in proceeds from warrant exercises. This is the strongest quarter for our cash position ever and reflects our continued focus on working capital management coupled with capital conservation and liquidity. We continue to believe that our Q1 ending cash balance is sufficient to fund operations through the end of the year. In addition, we expect to add cash reserves throughout the remainder of the year as we execute on planned operations and continue to win new business.
Speaker Change: On the cash side, we ended Q1 with the balance of $5 55.2 million driven primarily by the $50 6 million and proceeds from warrant exercises.
Speaker Change: The strongest quarter end cash position ever and reflects our continued focus on working capital management, coupled with capital conservation and liquidity.
Speaker Change: We continue to believe that our Q1 ending cash balance is sufficient to fund operations through the end of the year. In addition, we expect to add cash reserves throughout the remainder of the year as we execute on planned operations and continue to win new business as.
Steven Vontur: As we previously stated, we will continue to be opportunistic in the capital markets for defensive capital and to further strengthen our balance sheet. Operating cash used was $6.4 million in the quarter, with capital expenditures of $1.6 million, resulting in free cash flow for the quarter of an outflow of $8 million, which reflects the lowest quarterly cash burn since going public.
Speaker Change: As we've previously stated.
Speaker Change: We will continue to be opportunistic in the capital markets for defensive capital and to further strengthen our balance sheet.
Speaker Change: Operating cash used was $6 4 million in the quarter with capital expenditures of $1 6 million, resulting in free cash flow for the quarter of an outflow.
Speaker Change: $8 million, which reflects the lowest quarter cash burn since going public we continued to strive towards free cash flow breakeven as we remain disciplined with expenditures, while prioritizing a higher margin business.
Steven Vontur: We continue to strive towards free cash flow break-even as we remain disciplined with expenditures while prioritizing a higher margin. We ended the first quarter with contracted backlog of $222.3 million, an expected decline of about $46.3 million as we executed on our CLIPS and OHMS contracts. We expect backlog to grow during the remainder of the year, driven by key program awards, including LTV and the next OMS-III task orders, coupled with new award decisions, including NSNS and CP22.
Speaker Change: We ended the first quarter with contracted backlog of $222 3 million, an expected decline of about $46 3 million as we executed on our clubs in homes contracts.
Speaker Change: We expect backlog to grow during the remainder of the year driven by key program awards, including L. T D and the next one three task orders, coupled with New award decisions, including an S. N S and C V 22.
Steve: Moving onto our outlook for the year as Steve said, we had a great start with record revenues in the quarter. The recent L. T. B S Award and the solid opportunity is expected to be awarded in the next couple of quarters gives us confidence in providing a 2020 for revenue outlook.
Steven Vontur: Moving on to our outlook for the year, as Steve said, we had a great start with record revenues in the quarter. The recent LTBS award and the solid opportunities expected to be awarded in the next couple of quarters give us confidence in providing a 2024 revenue outlook of between $200 million and $240 million, representing an increase of 2.5 to 3.0 times prior year revenues. Overall, this was a record quarter both financially and operationally for Intuitive Machines.
Speaker Change: Between 200 and $240 million.
Steve: Representing an increase of two five to 3.0 times prior year revenues.
Intuitive Machines: Overall, this was a record quarter, both financially and operationally for intuitive machines.
Steven Vontur: This strength gives us confidence to provide an expanded revenue outlook for the year, which showcases the company's tremendous opportunity for continued growth. We look forward to executing on this growth throughout the year.
Steve: Strength gives us confidence to provide an expanded revenue outlook for the year, which showcases the company's tremendous opportunity for continued growth. We look forward to executing on this growth throughout the year.
Operator: With that operator, we are now ready for the questions.
Operator: Thank you, sir. Ladies and gentlemen, just a reminder, if you would like to ask a question, press star and then 1 now. The first question comes from the line of Suji DeSilva with Roth MK. Please go ahead.
Steve: Thank you so ladies and gentlemen, just a reminder, if you would like to ask a question Press Star and then one no.
Speaker Change: The first question comes from the line of Sujit de Silva with Roth MKS. Please go ahead.
Suji DeSilva: Hi Steve, congrats on the progress here. In talking about the guidance for 24, and the backlog, I'm curious about the period covered there, and you know how much of that covers your 24 new guidance of $200 to $240 million.
Speaker Change: Hi, Stephen and Steve Congrats on the progress here.
Speaker Change: Until I'm talking about the guidance for 'twenty for the the backlog I'm curious what the period covered there and how much of that covers your 24, a new guidance of $240 million.
Speaker Change: Yeah.
Steven Vontur: Hey Suji, thanks. Before the backlog component, we have about 80% of our backlog sitting right now at about $222 million. We believe about 80% of that backlog will be burned through the remainder of the year.
Speaker Change: Thank you.
Speaker Change: Before the backlog component, we have about 80% of our backlog.
Speaker Change: Sitting right now at about 2200 22 million, we believe about 80% of that backlog will be burned through the remainder of the year.
Speaker Change: Okay.
Speaker Change: Okay. That's great and then additionally, with that guidance for 24 are you assuming a new contract wins in that guidance or would that is it supported by existing existing wins in with any additional wins would be upside to the twenty-four guidance.
Suji DeSilva: Okay, that's great. And then, additionally, with that guidance for 24, are you assuming new contract wins in that guidance, or is it supported by existing wins, and would any additional wins be upside to the 24 guidance?
Speaker Change: Yeah, Hey, there soon.
Steven Vontur: Yeah, hey there, Suji. The way we look at that is...
Speaker Change: See the way, we look at that as a we probability weight.
Steven Vontur: What that is, we probability weight the awards that we have pending. So, what that includes in the lower end of the guidance is a mod to Mission 2 that we're negotiating with NASA, but there's upside that takes us to the higher end of the range and maybe beyond with a mod to IM3 on the negotiated landing time, the NSNS award, the next CLPS award, and then an IM2 success payment. So all of those are probability weighted, and that's what gives us the range that Steve described.
Speaker Change: Awards that we have in our offending so what that includes in the lower end of the guidance is the mod submission too that we're negotiating with NASA.
NASA: But theres upside that takes us to the higher end of the range and maybe beyond.
NASA: With a mod I am three on the negotiated.
Speaker Change: Lead time.
NASA: And I said that's award.
NASA: The next clips award and then and I am too success payments so.
Steve: All of those are probability weighted and that's what gives us the range that we got Steve described.
Steve: Okay I appreciate the effort there and then lastly, first time you guys mentioned, a potentially all commercial mission inserted between I guess I am three I'm I'm for.
Suji DeSilva: Okay, appreciate the effort there. And then lastly, the first time you guys mentioned a potentially all-commercial mission inserted between, I guess, IM3, and IM4. I'm wondering if that would, in concept, have an anchor customer with some ancillaries or whether it would be equally kind of portioned out in the payloads across sort of a series of customers. What's the general direction of that?
Steve: I'm wondering if that would Steve and in concept have an anchor customer with some ancillary or whether it would be equally kind of apportioned out in the payloads across sort of a series of customers. What's the what's the general direction that would be.
Stephen Altemus: Yeah, right now we're aggregating a set of payloads, waiting to get to an essentially critical manifest where we can go forward with the purchase of a booster. And so those payloads come in fairly evenly sized, and occasionally we'll get one that's a little bit larger. And in this case, that's what we're negotiating. That gets us to the point where we can actually declare we have this commercial mission. So it'll be kind of a mix. To not answer your question directly, but it's kind of a mix as we go forward from smaller to medium to maybe a large payload. And that will round out the complement.
Wade: Yeah, right now we're aggregating a set of payloads Wade.
Wade Wilson: Waiting to get to essentially critical manifest where we can go forward with a purchase of a booster and so those payloads come in.
Wade Wilson: Fairly evenly.
Wade Wilson: Evenly sized.
Wade Wilson: And occasionally we'll get one that's a little bit larger in this case that that's what we're negotiating that gets us to the point, where we can actually declare we have this commercial mission. So.
Wade Wilson: It'll be a kind of a mix.
Wade Wilson: That answer your question directly, but it's a it's kind of a mix as we go forward from smaller to medium to maybe a large payload.
Wade Wilson: And that will round out the complement.
Operator: That sounded fairly even. Thanks, Steve. Thanks, guys.
Wade Wilson: That sounded fairly even thanks, Steve Thanks, guys.
Wade Wilson: Thank you next question comes from the line of Josh Sullivan with the Benchmark Company. Please go ahead.
Joshua Ward Sullivan: Thank you. The next question comes from the line of Josh Sullivan with the Benchmark Company.
Joshua Ward Sullivan: Hey, good morning.
Wade: Yeah.
Joshua Ward Sullivan: Morning, Josh. As far as the cash burn here, you know, down substantially over the year, but what are the big draws in the year?
Joshua Ward Sullivan: Good morning, Josh.
Joshua Ward Sullivan: As far as the cash burn here, you know down substantially year over year, but what are the big draws and into year end.
Joshua Ward Sullivan: Yeah.
Wade: I missed the last part Jeff.
Joshua Ward Sullivan: I missed the last part, Josh. The big draws. I'm just trying to...
Wade: I'm just trying to.
Joshua Ward Sullivan: I'm just trying to understand, you know, cash burns down here, you know, you're stating that you think you have a good cash balance here to get you through the end of the year. I'm just curious, what are the large tentpoles for cash burn as we work into the end of the year?
Joshua Ward Sullivan: I'm just trying to understand you know cash burns down here you know you're stating that you think you have a good good cash balance here to get you through the end of the year I'm. Just curious you know what are the large tent poles for cash burn as we as we work into the end of the year.
Steven Vontur: Yeah, we run the indirect support at about 3.3 million dollars a month. That's our indirect burn, and as part of cost of goods sold, the biggest payments or drawdown would be the booster payments for each of our missions. We have booster payments for IM2 and IM3 on the books for this year, and so I'd say those are the biggest ones that we have as accounts payable.
Wade: Yeah, we've run the indirect.
Wade: Support at about a three.
Speaker Change: $3 $3 million a month.
Wade: Our indirect burn and as part of cost of goods sold the biggest payments or draw down would be the booster payments for each of our missions are we a booster payments for I am too and I am three on the books for this year.
Speaker Change: I'd say those are the biggest ones that we are we have as our accounts payable.
Joshua Ward Sullivan: Got it.
Speaker Change: Got it and then in your comments there you mentioned the Chinese lunar mission and you have the Indians looking at their own sample return here.
Speaker Change: What's your view of that strategic tempo for that conversation in the U S. As other nations ramped up their lunar ambitions is it picking up these missions used is viewed as competition, whereas NASA really moving at their own pace.
Stephen Altemus: Well, I think we're fortunate, as I said, that the U.S. economy, where we have, NASA, or the U.S. government has kind of sparked the U.S. commercial economy to break the price barrier of what it takes to go to the moon. And if we can install an annual cadence of missions to the moon, we will, while it feels like we might be behind in that we aren't flying as frequently or as complex missions as China may be at this point, we'll catch up quickly as we have many more shots on goal.
Speaker Change: Well I think I have to work for.
Speaker Change: As I said it is the U S economy, where we have NASA has soared in the U S. Government has kind of sparked the U S.
NASA: Commercial economy to to breaks the price power of what it takes to go to the Moon and if we can install an annual cadence of missions to the Moon, we will while it feels like we might be behind and that we don't aren't flying.
NASA: Frequently or as complex missions as China may be at this point well catch up quickly as we have many more shots on goal. So I think the eclipse program in particular lends itself to.
Stephen Altemus: So I think the CLPS program in particular lends itself to building a bigger supply chain and base for us to commercialize the moon. While the heavy lift activity is occurring, which is of strategic interest, and heavy lift SLS might be moving to the right, CLPS can fill in with cargo missions to put the critical elements on the surface ahead of the humans. And I think that's where NASA is going and where the government is going, and we're happy to provide that service for them.
Speaker Change: Building, a bigger supply chain and base for us to commercialize.
Speaker Change: Commercialize the mood.
NASA: While the heavy lift activities occurring which is our strategic interests and heavy lift SLS and might be moving to the to the right clips can fill in with a cargo missions to put the critical elements on the surface ahead of the humans and I think that's where the NASA is going and where the government is going and where how.
Speaker Change: To provide that service for them.
Speaker Change: Great. Thank you for your time.
Joshua Ward Sullivan: Great. Thank you for the time. Thanks, Josh.
Speaker Change: Thanks, Josh.
Speaker Change: Thank you next question comes from the line of Antares Shepherd with Cantor Fitzgerald. Please go ahead.
Andres Juan Sheppard: Thank you. The next question comes from the line of Andres Sheppard with Cantor Fitzgerald. Please go ahead.
Speaker Change: Okay.
Andres Juan Sheppard: Hey everyone, good morning. Congratulations on the quarter and thanks for taking our questions. I wanted to maybe ask, you know, how should we be thinking about margins for IM Mission 2 and also maybe for the OMS contract? Just curious if you could maybe, or give some color there as to kind of what kind of margins you might expect. Thank you.
Andres Juan Sheppard: Hey, everyone. Good morning, congratulations on the quarter and thanks for taking our questions.
Andres Juan Sheppard: I wanted to maybe ask you.
Andres Juan Sheppard: How should we be thinking about margins for the I M. A mission to in part and also maybe for the owns contract just curious if you could maybe.
Speaker Change: Born out or give some color there as to kind of what kind of margins my might you expect thank you.
Steven Vontur: Well Andres, thanks for the question. As we've reported historically, IM2 and IM3 emissions are loss projects or close to break-even. So as we work the rest of that, those operations off of those contracts, we won't have any margin on that. Ohm's margin is running in the 5% range on a consolidated basis. So... Again, don't expect any future losses on the IM2 or 3 contracts, but we may have some bumps to that with the final success fees, successful BOFSA fees like we had on IM1 once we land.
Andre: Well Andre.
Speaker Change: Thanks for the question.
Speaker Change: So as we go forward.
Speaker Change: Historically I have two and three emissions are a loss.
Andre: Projects was close to breakeven so absolutely work the rest of that.
Speaker Change: There's all sorts of those contracts well.
Speaker Change: Mark.
Speaker Change: <unk> margins were on the 5% range on a consolidated basis.
Andre: So.
Speaker Change: Don't expect any future losses on contracts.
Speaker Change: Contracts, but we may have some bumps to that with the final access fees.
Speaker Change: That's a mouthful.
Speaker Change: One what's the why.
Speaker Change: Yeah.
Speaker Change: Yeah.
Andres Juan Sheppard: Got it. That's super helpful. I appreciate that. And maybe just a quick follow up as it pertains to the Lunar Terrain Vehicle contract. Can you just remind us what maybe the next catalyst there is, and I guess that program is the expectation that is going to get narrowed from the three companies that have bid to either one or two. Just trying to understand how you might see that one playing out. Thank you.
Speaker Change: Got it that's super helpful. Appreciate that.
Speaker Change: A quick follow up.
Speaker Change: Due to the lunar terrain vehicle a contract.
Speaker Change: Can you just remind us what our movie then that's a catalyst there.
Speaker Change: And I guess is that program is the expectation that is gonna get narrowed from the three companies that have data to either one or two just trying to understand how you might see that one playing out. Thank you.
Stephen Altemus: Yeah, we have a period of about a year, a 12-month period, 10 to 12-month period to do the preliminary design of the delivery system and the LTV, as I stated. There are 3 companies that are doing that over the next year, roughly on the order of a $30 million task order we expect later this month, issued by NASA to kick that off. But then what will happen is there will be a demonstration portion to actually take and fully develop the design, build it, and deliver it to the moon as a demonstration.
Speaker Change: Yeah, we have a period of about a year 12 months period.
Speaker Change: 10 to 12 month period to do the preliminary design of the delivery system and the LTV as I stated.
Speaker Change: There's three companies that are doing that over the next year.
Speaker Change: Roughly on the order of $30 million task order a weeks.
Speaker Change: Later this month.
Speaker Change: Issued by NASA to kick that off.
NASA: But then what will happen is there'll be a demonstration portion to actually take.
NASA: <unk> fully developed the design build it and deliver it to the moon as a demonstration NASA has indicated that that could be multi multiple award right now they're thinking possibly one maybe two out of the three of the companies would go forward with that demonstration. However, let me point.
Stephen Altemus: NASA has indicated that there could be multiple awards. Right now, they're thinking possibly 1, maybe 2 out of the 3 companies would go forward with that demonstration. However, let me point out that that's a $4.6 billion contract over 15 years, and it's written so broadly that there are a number of services that can be purchased under that multi-award IDIQ contract. And those services could include things like data sales or communications that go with and complement the LTV itself and the demonstration. So, the bigger task order, though, is that one that's issued mid-2025 next year, and we compete for the demonstration.
Speaker Change: But thats the $4 $6 billion contract over 15 years and it's written so broadly that there are a number of services that can be purchased under that multi award <unk> contract and those services could include things like data sales or communications that go with and complement the LTV itself.
Speaker Change: The demonstration so the bigger task order, though is that one that's issued mid 2025 next year and we compete for with a further demonstration.
Speaker Change: Got it. Thanks, that's very helpful and very exciting congrats again on the quarter I'll pass it on thank you.
Andres Juan Sheppard: Got it. Thanks, Steve. That's very helpful and very exciting. Congratulations again on the quarter. I'll pass it on. Thank you.
Andrew: Thanks, Andrew.
Griffin Boss: Thank you. The next question comes from the line of Griffin Boss with B Riley Securities. Please go ahead.
Andrew: Thank you next question comes from the line of Christian Buss with B Riley Securities. Please go ahead.
Griffin Boss: Hi, good morning, and thanks for taking my questions. I'll start with LTV. Can you talk more broadly about what NASA potentially will require from the LTV in terms of capacity, or how much time NASA expects to utilize these LTVs, and then, in turn, the possible leftover availability to leverage for commercial use cases? And then, related to that, have you received any initial interest already from potential commercial customers looking to use any excess capacity for the LTV?
Christian Buss: Hi, good morning, and thanks for taking my questions I'll I'll start on L. T. V. Can you talk more broadly about what what NASA potentially will require from the LTV and in terms of capacity or how much time NASA expects to utilize these ltvs and then in turn the possible leftover.
Andrew: Our availability to leverage for commercial use cases, and then related to that is if you've received any initial interest already from potential commercial customers looking to use any excess capacity for the LTV.
NASA: [noise] well, yes, NASA plans to use.
Stephen Altemus: Well, yeah, NASA plans to use the mission for...
Stephen Altemus: The mission is for both autonomous science and discovery, where they fly in science payloads to use the LTV mobility capability to gather necessary science, as well as use it for astronauts when they're present on the surface, moving around cargo and logistics and collecting geological samples and things like that. So there is a plan. I think the overarching plan ranges from about six to seven months a year of NASA use and, you know, five to six months of commercial use, which is quite exciting that, in this case, Intuitive Machines would own the infrastructure and be able to operate the infrastructure while NASA's not there.
NASA: The mission for both autonomous Science, and discovery, where they fly science payloads to U V. L. T V.
NASA: Our mobility capabilities to gather the necessary science as well as use it for astronauts when they're there present on the surface moving around cargo and logistics and in collecting a geological samples and things like that so there is a plan I think the overarching plan ranges from about.
Speaker Change: Six to seven months, a year of NASA use and you know a five to six months of commercial use.
Speaker Change: Which is quite exciting that in this case into the machines would own the infrastructure and be able to operate the infrastructure. While mass is not there that's quite unique in terms of the contract and the service that we provide.
Stephen Altemus: That's quite unique in terms of the contract and the service that we provide. We have had interest from individuals or companies that want to do excavating and mining and harvesting of materials on the surface and caching those materials for later return to Earth. So that's quite interesting. And there were a number of, in our commercialization plan that we submitted to NASA, there were a number of letters of interest from companies. I think we had on the order of 10 companies interested in using the LTV should we be awarded the contract. So quite a bit of interest. And I think as we move forward and it gets more attention, that interest will only grow.
Speaker Change: We have had interest for individuals.
Speaker Change: Individuals or companies that wants to do excavating in mining and harvesting of materials on the surface.
Speaker Change: And caching nodes materials for later return to Earth.
Speaker Change: So that's that's quite interesting Ah and there was a number of in our commercialization plan that we submitted to NASA. There were a number of letters of interest from companies I think we had on the order of 10 companies interested in using the L. T V.
Speaker Change: Should we be awarded the contract so quite a bit of interest and I think as we move forward and it gets more attention that interest will only grow.
Steve: Got it great. Thanks for the color there, Steve and then I.
Griffin Boss: Got it. Great. Thanks for the color there, Steve. And then, more broadly, there's a lot of talk about SpaceX's Starship for various reasons, obviously, but I'd be curious to hear your thoughts on what a successful operational Starship could mean for the future of lunar transport in general and maybe for Intuitive specifically.
Steve: More broadly there's a lot of talk about space, Texas Starship for various reasons, obviously, but I'd be curious to hear your thoughts on what a successful operational starship could mean for the future of lunar transport in general and and maybe for intuitive specifically.
Stephen Altemus: Yes, as I mentioned in a previous question, I think what's of strategic importance to the United States is the heavy lift capability and whether that heavy lift comes in a version of the.
Speaker Change: Yeah. So as I mentioned in a previous question I think what sort of strategic importance to the United States is a heavy lift capability and whether that heavy lift comes in the version of the space launch system for the Starship.
Stephen Altemus: And whether that heavy lift comes in the version of the Space Launch System or the Starship, it will be a critical component to sustain human presence on the Moon. What's nice, though, is that Intuitive Machines is complementary to Starship. And Starship, while it has a very heavy cargo and a way to aggregate multiple mission elements on a single mission to the Moon, will have regular cargo deliveries of smaller sizes to the Moon and in various locations around the Moon that will keep the cadence of missions up and will be enough to really feed a community of smaller delivery service companies that will be put in charge of cargo and critical systems and satellites around the Moon.
Griffin Boss: Okay, excellent. And then if I could sneak one more in there,
Speaker Change: There will be a critical component to sustain human presence on the on the mood, what's nice though is that intuitive machines as complementary to starship and starship, while it has a very heavy cargo and a way to aggregate multiple michigan elements on a single.
Intuitive Machines: <unk> mission to the Moon will have regular cargo deliveries of smaller sizes to the moon and in various locations around the moon that we'll keep the cadence submissions up and will be enough.
Speaker Change: Enough to.
Elon Musk: Really feed our community of smaller delivery service companies.
Speaker Change: That will be put into cargo in critical systems and.
Speaker Change: And satellite surround the mood.
Speaker Change: On the Moon.
Speaker Change: Okay excellent and then just if I could sneak one more in there without putting words in your mouth, Steve you talked about the the first potential fully commercial mission. After I am three Oh, you said you were aggregating payloads is it would it be right to assume then that you you were seeing.
Griffin Boss: Without putting words in your mouth, Steve, you talked about the first potential fully commercial mission after IM3. You said you were aggregating payloads. Would it be right to assume then that you're seeing enough demand today to fulfill a fully commercial mission? Or are you expecting to get whatever incremental demand that would warrant a fully commercial mission within the next two years?
Speaker Change: Enough demand today too to fulfill a fully commercial mission or are you expecting to get you know whatever incremental demand that's wood would warrant a fully commercial mission within the next two years.
Speaker Change: Yeah.
Stephen Altemus: We have signed contracts with multiple payloads that we've been aggregating and holding for this commercial mission. And as those come in and as we negotiate those contracts, we get to a point where we have enough to declare a mission. And those negotiations are signed contracts and negotiations underway that give us the opportunity to declare a commercial mission today. We expect more to come in over the next two years. And this gap between the last completed Eclipse mission and CP22, which is the next one, is that two-year gap that we want to fill so that we maintain this cadence of missions going to the moon. So we see a lot of commercial interest and international interest in terms of signed contracts to fly to the moon, and we see that growing continually over the next couple of years.
Steve: We have signed contracts with multiple payloads that we've been aggregating and holding.
Speaker Change #100: For this commercial mission and as those come in and as we negotiate those contracts we get to a point, where we have enough to declare emission and those negotiations are signed contracts and negotiations underway that give us the opportunity to declare.
Speaker Change #100: Our commercial mission today.
Speaker Change: We expect more coming in over the next few years and this gap between.
Speaker Change: The last competed.
Speaker Change: <unk> mission and C. P 22, which is the next one is that two year gap that we are we want to fill so that we maintain this cadence submissions go into the mood. So we see a lot of commercial interest in international interest in terms of signed contracts to fly to the Moon and we see that growing continually over the next couple of years.
Griffin Boss: Excellent. Great. I appreciate you taking the time to answer my questions. Thanks, everyone.
Speaker Change #111: Excellent great I appreciate you taking my questions. Thanks, everyone.
Kevin: Thanks, Kevin.
Speaker Change #116: Thank you next question comes from the line of Austin Moeller with Canaccord Genuity. Please go ahead.
Operator: Thank you. The next question comes from the line of Austin Moeller with Canaccord Generative. Please go ahead.
Austin Nathan Moeller: Hi, good morning. Nice quarter.
Speaker Change #124: Hi, good morning nice quarter.
Austin Nathan Moeller: My first question here are all the asps falling slots on I am too and I am pretty currently occupied and if not are you still seeking payloads to put on there before.
Austin Nathan Moeller: Just my first question here: are all the ESPA ring slots on IM2 and IM3 currently occupied? And if not, are you still seeking payloads to put on there before integration?
Speaker Change: Sure.
Stephen Altemus: So all the slots, good question Austin, good to hear from you. All of the slots on IM-2 are filled, and we're at max capacity and sold out. We still have some availability on an ESPA ring slot on IM-3 that we're talking with payload customers to fill that slot prior to that mission.
Speaker Change #102: So all of those slots good question Austin, it's good to hear from you.
Speaker Change #105: All of the slots on IL, two our field and we're at Max capacity is sold out.
Speaker Change #105: We still have some availability on Oh, that's the rig slot on I am three that were talking with a payload potentially payload customers to fill that slot.
Speaker Change #105: Sure to that mission.
Speaker Change #113: Great and just a follow up what's currently the status of the first con related satellite that was supposed to be riding aboard I am too how should we be thinking about that.
Austin Nathan Moeller: Great, and just to follow up, what's the status of the first communication relay satellite that was supposed to be riding aboard IM-2? What should we be thinking about that?
Speaker Change: Yeah.
Stephen Altemus: So what we've done is we've combined, we went back and looked at that in anticipation of an NS award, which I mentioned should be coming out in the second quarter, where hopefully we're awarded that mission. We've built out a much better capability on CON-2, or our second communications satellite, and found that the first satellite wasn't compliant with the requirements that NASA, we anticipate coming out of NASA. So we built a better, or are building a better bus and comm relay on CON-2, our second satellite, and we'll fly that on IM-3.
Speaker Change: So what we've done is we've combined.
Speaker Change: We went back and looked at that in anticipation of it.
Speaker Change: The award, which I mentioned it should be coming out in the second quarter more hopefully were awarded that mission.
Speaker Change #104: <unk> built out is.
Speaker Change #104: And much better capability on con to where our second communication satellite and found that the first satellite wasn't compliant with the requirements NASA, we anticipate coming out of NAFTA. So we built a better or are building a better bus and calm relay on on time too.
Speaker Change: Second satellite.
Speaker Change: It will fly that on line three.
Austin Nathan Moeller: Excellent. Thanks for the details.
Speaker Change #103: Excellent thanks for the details.
Austin Nathan Moeller: Thanks, Austin.
Speaker Change: Thanks Austin.
Speaker Change #126: Thank you next question comes from the line of Edison <unk> with Deutsche Bank. Please go ahead.
Edison Yu: Thank you. The next question comes from the line of Edison Yu with Deutsche Bank. Please go ahead.
Edison Yu: Hey, good morning. Thank you for taking our questions. What about the geopolitical angle? How do you think this aspect is sort of playing out, especially with the view on the system of our economy at the moment?
Speaker Change #107: Hey, good morning, Thank you for taking our questions.
Speaker Change #114: On the geopolitical and go how do you think that aspect of it.
Edison <unk>: Playing out, especially with.
Speaker Change #119: U D U N D under six of our economy at the moment.
Speaker Change: Yeah.
Edison Yu: I missed the last part, Edison. You failed off there. The DOD's interest in this space race? Is that your comment? That's just literally what I'm talking about. Oh, okay. Yeah.
Speaker Change #101: I missed the last part of Edison.
Speaker Change #101: Certain of these interest in this space race was that big pharma.
Speaker Change #108: That's just literary economy.
Speaker Change #110: Oh, Okay, Yeah, well I think there was some I'd stated by a number of the.
Stephen Altemus: Well, I think there's some, as stated by a number of the DOD leadership, that there's a lot of interest in what's going on in GEO and ex-GEO, and that maintains their focus and priority at this point. And I think as the traffic model increases in and around the moon, that will then gain some priority. But they're going to need more than one or two missions to the moon a year before they'll be able to reallocate budgets towards the cislunar economy.
Speaker Change: The leadership, but there's a lot of interest in.
Speaker Change: What's going on in G O and X T O and that maintains a.
Speaker Change: Focus and priority at this point and I think as the traffic model increases in and around the Moon that will then gain some priority, but they're going to need to see more than one or two missions to the moon, a year before they'll be able to reallocate budgets towards system.
Stephen Altemus: So we're seeing the Space Force appetite for cislunar capabilities slowly growing over the next couple of years. And then, like I said, as the traffic model increases, that appetite for additional information in space traffic management and space domain awareness will increase.
Speaker Change: Condoms, so we're seeing the space force, our appetite for CIS lunar.
Speaker Change: <unk> capabilities.
Speaker Change: Slowly growing.
Speaker Change: Over the next couple of years and then that's the track like I said as the traffic model increases.
Stephen Altemus: Appetite for additional information and space traffic management space domain awareness will increase.
Speaker Change #123: I understand.
Operator: Andres Sheppard, Stephen Altemus, Laura Li, Steven Vontur, Andres Sheppard, Stephen Altemus,
Speaker Change #117: And just kind of more longer term and broader question on an LTV, how do we think that sort of fits into the company's overview and strategy. When we couple that with the upcoming Renaissance in 'twenty.
Speaker Change #112: 22 awards.
Speaker Change #118: So I think with respect to L. T V. It's part of the strategy to if I think about it.
Stephen Altemus: So I think, with respect to LTV, it's part of the strategy to, if I think about it delivery, be able to take things to the surface.
Stephen Altemus: delivery to be able to take things to the surface, to be able to communicate, essentially command and control communications around the moon are of critical interest, including navigation. And then the ability to do extreme mobility. And LTV gives you that.
Speaker Change #120: Delivery to be able to take things to the surface to be able to communicate essentially command and control communications around the moon is of critical interest, including navigation and then the ability to do a extreme mobility and LTV gives you that and because we can then move around the surface. We can begin to bill.
Stephen Altemus: And because we can then move around the surface, we can begin to build infrastructure that supports sustained human presence on the moon. And so our company has built an ecosystem of capability in and around the moon. And in terms of delivery, command and control, communications, and extreme mobility. And that's how that all fits together. And we're anxiously awaiting, like I said, that last chess piece in the NSNS contract to be able to deploy our data relay satellites and provide that service back to the government for communications around the moon.
company: All the infrastructure that supports sustained human presence on the Moon and so our company is build an ecosystem of capability in and around the mood and in terms of delivery of command control communications and extreme mobility and that's how that all fits together and we're anxiously awaiting.
company: Like I said that last chess piece and the N. A set of contracts to be able to deploy our data really satellites and provide that service back to the government for communications.
Stephen Altemus: Around the move.
Stephen Altemus: Great. Thank you.
Allison: Thank you Allison.
Speaker Change #121: Thank you.
Stephen Altemus: Thank you. There are no further questions. I would like to hand the floor back to Intuitive Machine CEO Steve Altemus for closing remarks.
Speaker Change #122: No further questions I would like to hand, the floor back to intuitive machine CEO, Steve Ultimate for closing remarks.
Stephen Altemus: Well, thank you everybody for attending and joining us today on the call. As you heard, we've had a historic first quarter, both operationally and financially, and we expect to build on that momentum throughout the year. I look forward to talking to you in the future. Thank you.
Stephen Altemus: Well, thank you everybody for attending and joining us today on the call.
Speaker Change: <unk> had a historic first.
Steve Ultimate: First quarter, both operationally and financially and we expect to build on that momentum throughout the year I look forward to talking to you in the future. Thank you.
Operator: Thank you. This concludes today's teleconference. You may disconnect your lines at this time. Thank you for your participation.
Speaker Change #125: Thank you. This concludes today's teleconference. You may disconnect. Your lines at this time. Thank you for your participation.
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